IMF race heats up

The United States was tight-lipped about its pick for the next head of
the International Monetary Fund after Europe threw its support behind
France's finance minister, Christine Lagarde. As the biggest IMF
shareholder, the US could cement Lagarde in the powerful global
finance post if it joins forces with the seven European IMF directors
on the IMF board. Yet, after Lagarde officially launched her candidacy
in Paris Wednesday, and Jose Manuel Barroso, head of the European
Commission, declared his support, the United States took the quiet
tack. By tradition at the 66-year-old institution, a European is the
IMF managing director, while an American holds the number-two IMF post
and the World Bank presidency. The resignation of Dominique
Strauss-Kahn a week ago, after he was charged with sexual assault and
attempted rape of a New York hotel maid, has focused the spotlight on
the developing world's drive to end the power-sharing agreement.
Lagarde, who announced her bid amid swelling support in European
capitals after Strauss-Kahn's May 14 arrest, has drawn backing outside
Europe from one country—Congo, on Sunday —but cautious comments
elsewhere, including the United States. US treasury secretary Timothy
Geithner on Wednesday called Lagarde and Agustin Carstens, the
governor of Mexico's central bank, 'very credible' candidates to lead
the International Monetary Fund, without endorsing either. The two are
the first declared candidates in the race to succeed Strauss-Kahn, who
denies the sex charges. 'Two very credible people now said they'd like
to run the institution,' Geithner said at a Politico news event in
Washington. 'There may be others that join them.' Nominations close
June 10 and the 24-member executive board is expected to select the
next managing director of the 187-nation IMF by the end of June.
Washington's North American neighbours, Mexico and Canada, praised the
qualifications of Lagarde and Carstens, but only Mexico has taken a
position, nominating Carstens.
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